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I did this quest on Manaan, so it might be different on another planet, but the bug happened through three reloads from different save points and all of them only resolved the same way. If you get the Juhani companion quest and get ambushed by Xor (his second appearance), if you kill the Selkath with him first and save him for last, the game seems to bug out and does not continue his dialog. You drop out of combat but then he just stands there. You MUST kill/disable him first, then kill off his thugs for the dialog to continue.
You might want to mention this to the K1RP crew to fix, if it hasn't been fixed already...